Case study 06.01.2009

Have you thought how you will maintain or even enhance your lifestyle in later life?

What is a Family Pension Trust?

A Rowanmoor Pensions Family Pension Trust is a private pension scheme, independently established for the benefit of its members. Each scheme is a separate trust and will be registered with HMRC. Members have separate arrangements within the scheme and have full control of their own pension investments. The scheme also allows pooled funds within the trust and anyone in any employment status can be a member.

A Rowanmoor Pensions Family Pension Trust is designed to provide members with:

a tax-efficient way to build up a pension fund;
control to invest in assets of their choice;
flexibility to choose when and how to take benefits;
the ability to make joint investments with other Family Pension Trust members.

A Family Pension Trust provides members with considerable tax advantages;

a member who is a UK resident will receive tax relief on their personal contributions of up to £3,600 (gross) or 100% of their earnings, if greater, as long as they do not exceed the annual allowance applying to the tax year in which the contribution is made;
contributions made by an employer qualify for tax relief in the year they are made, provided they are wholly and exclusively for the purposes of the employer’s trade;
investments (other than dividend income) grow free from UK capital gains tax and income tax;
a pension commencement lump sum can be taken between age 55 (age 50 until 2010) and age 75, free of tax;
lump sum death benefits can be paid until age 75, free from inheritance tax;
investments are protected from personal bankruptcy.